beyondbinaryfandomcom-20200215-history
Blockchain Transactions
... Fees (Fee chart) |BitcoinFees://Bitcoin Fees Explained> "People often claim that with Bitcoin "you can send money between any two points on earth for free". While that is true in some cases, sometimes a transaction fee is required. The fee, when it is required, is usually worth a few dollars. The fees go to the miners to incentivise them to keep mining, which in turn keeps the Bitcoin network secure. They already get a reward of 12.5 XBT for each block they mine, but this reward halves every 4 years. The plan is that as the block reward diminishes over the time, it will be replaced by transaction fees." Fees are calculated based on the length of the transaction in bytes. If the transaction is longer than 10000 bytes, it requires a fee: "Once, someone got lucky and turned 0.02 XBT into 1280 XBT on a 64000x payout bet on a bitcoin 'dice' game! When the site paid out the winnings they didn't have a single 1280 XBT input lying around in their wallet. Instead what they had was a whole bunch of various sized outputs from other players' losing bets, as well as a lot of change from paying other winners. The transaction the site created to pay the winner of this jackpot used so many inputs that it ended up being 51,203 bytes long. Being over 10000 bytes, this required a fee of 0.0005 XBT per 1000 bytes or part thereof (prior to being changed to 0.0001, the fee used to be 0.0005), so the required fee was 52 * 0.0005 = 0.026 XBT. That's more than the player bet in the first place. Who says Bitcoin transactions are free!" Batching Transactions How Zebpay reduced bitcoin transaction fees "Zebpay struggled to keep up with customers transfers and customers complained about the unreliability in fees and confirmations. The average fees that we were paying initially was 100 bits , and we had increased the average fees to 200 bits to ensure better confirmations. We found that during peak clogged times, even though we were charging 500 bits from our customers, we were still paying additional fees from our pocket to ensure that transactions got confirmed." "Since Zebpay uses a hosted wallet, our fees cannot be compared to customer wallets such as Mycelium or Core. Those wallets can construct the exact utxo when users initiate a transaction. For Zebpay, lots of users can initiate a transaction at the same time and it is tough to predict the utxo set." (see also Blockchain Memory) "We batch all transactions every 5 minutes and create one transaction that would take 1 input from our hot wallet and the outputs would contain all the addresses that users wanted to transfer to. This ensured that we could pay a high fees for one transaction that combined all transactions during the 5 minute period. We also keep checking mempool congestion and during times when the mempool is not clogged, we consolidate all utxos of our wallets to better manage our wallet with lesser utxos." Category:Blockchain Category:Money Category:Finance Category:Cryptocurrency